12 Energy
12.1 Introduction Otago is a hydro-electric power producing region and a major exporter of electricity in New Zealand today. The two large existing hydro-electric schemes in the region, Roxburgh (320 MW) and Clyde (432 MW), combined with the large number of other medium and small size schemes, bring the region s total capacity to 859 MW. However, only partial exploitation of Otago s hydroelectric resources has occurred to date and subject to water allocation decisions, considerable potential remains for further development of the renewable water resource. Energy use is understood to be increasing in Otago with recent sales figures from the region s four electricity supply authorities showing steady increases. Demand patterns for non-renewable energy sources such as petrol are similarly growing. This is The Electricity Corporation of New Zealand (ECNZ) is conducting ongoing investigations into further stations at Lake Hawea outlet, Luggate and Queensberry on the upper Clutha River and at Tuapeka Mouth on the lower Clutha River. Electricity supply authorities and other developers may also have options for further hydro-electric development in the region. The potential total capacity of hydro-electric schemes in Otago is estimated at 2,222 MW, of which 1,020 MW is considered by the Ministry of Commerce to have attractive potential. As such, 13% of New Zealand s most attractive remaining hydro resource potential is located in Otago (see Figure 6). Otago also has a range of other conventional energy resources which could offer future development opportunities (eg. the subbituminous coal and lignite fields at Kaitangata, St Bathans and Roxburgh). Major coal resources exist in the Otago region and this energy is important to local industry and consumers. However, less conventional energy sources such as biogas, solar, cogeneration and wind power are increasingly recognised as acceptable longterm energy sources which, for Otago, appear likely to offer more promising opportunities and lower associated environmental impacts (eg. the potential wind farm site of Rocklands in inland Otago). Figure 6 Existing and Potential Hydro-Electric Resources in New Zealand (Source: Hydro Resources of New Zealand, Resource Information Report 7, Ministry of Commerce, Wellington, April 1990) Regional Policy Statement for Otago 166
comparable with national trends in energy use which suggest that there has been a rising use of energy per unit of gross domestic product (ie. rising energy intensity). This is a direct result of investment in energy intensive industries such as tourism, meat and dairy processing, aluminium smelting, forestry and petrochemicals, and the substitution of energy for labour. This investment reflects the changes to our economy as we add more value to our primary products prior to export. The Parliamentary Commissioner for the Environment tabled a report in Parliament in 1992 which referred to New Zealand s present energy use as inefficient and unsustainable and as a problem which is getting worse. However, opportunities exist for improving the efficiency of energy use. Regional Policy Statement for Otago 167
12.2 Roles of Different Agencies The production and use of energy (including the development of energy resources) within New Zealand is largely determined by the free market. Central Government planning or control is minimal. At the regional and local level, local authorities are responsible, under the Resource Management Act, for promoting the sustainable and efficient management of Otago s natural and physical resources. The Act defines natural and physical resources as including energy. The powers available under the Resource Management Act to directly control the production and use of energy and the development of the region s energy resources, are limited. The adverse effects of energy production, use, transmission and distribution are considered, along with the effects of all activities utilising the region s resources, within appropriate chapters of this Regional Policy Statement, including manawhenua, land, water, air, coast and the built environment. The roles of the various agencies are: 12.2.1 Central Government The Energy and Resources Division of the Ministry of Commerce collects and collates information as required by statute and provides policy advice to Government on matters related to energy. It also undertakes energy forecasting. The Energy Efficiency and Conservation Authority was established in June 1992 as an independent agency within the Ministry of Commerce. The Authority s role is to promote the conservation of energy resources. The Authority does not have a regulatory role. 12.2.2 Otago Regional Council The Otago Regional Council has a responsibility to promote the sustainable and efficient management of the region s resources, including energy resources. As such, the Council is able to advocate for and educate and promote such things as clean renewable energy sources and energy efficient practices in order to ensure they have a central role in Otago s future. The Regional Council is also responsible for considering the adverse effects of energy production, use, transmission and distribution on Otago s land, water, air, coastal and built environment resources. It does this through considering applications for resource consents to utilise those resources and through establishing policies and plans. 12.2.3 Territorial Local Authorities Otago s territorial local authorities are also responsible for promoting the sustainable and efficient management of natural and physical resources and are therefore able to educate about, advocate and promote about the sustainable and efficient production and use of energy. They also manage landuses and are able to make decisions that result in the avoidance, remedy or mitigation of the adverse effects of energy production, use, transmission and distribution. Regional Policy Statement for Otago 168
12.3 Issues Explanation Objectives Policies See Also Other Issues 12.3.1 The production and use of energy can have both positive and negative effects on Otago s communities and resources. The production, use, transmission and distribution of energy is often associated with undesirable environmental effects, including adverse effects on public health. At the extreme, nuclear power generation holds the risk of Chernobyl-type accidents. With hydroelectric developments, there is the risk of disasters similar to that of Longerone, Italy, where two thousand people were killed in 1962 when a mountainside fell into the Vaiont reservoir and flooded the valley. The more commonly cited adverse effects of hydro-electric power development include effects on the natural character of river systems, flora and fauna and local communities. Unmodified and unregulated rivers are a diminishing resource. Hydro development can interfere with or prevent other uses and values of a river, such as scenic values, fish use, wildlife habitats, recreational uses, irrigation or reticulation, tourism features and opportunities and manawhenua values. Sediment balances can be altered and ecological effects may extend to coastal environments. Rigorous environmental analysis is a component of any new energy project proposals and this assists in the sustainable management of affected land, water and other resources. 12.4.1 12.5.1 12.5.4 4.3.1 to 4.3.6 5.3.2 5.3.5 5.3.7 6.3.2 to 6.3.5 6.3.7 to 6.3.8; 6.3.10 7.3.1 to 7.3.2 8.3.1 9.3.1 10.3.1 10.3.4 to 10.3.5 11.3.6 to 11.3.7 13.3.5 14.3.1 to 14.3.6 15.3.1 The use of fossil fuels is associated with most air pollution (90% of carbon dioxide emissions in New Zealand are energy related), some solid waste contamination and water pollution incidents. Such pollution can adversely affect the public health of communities. Undesirable environmental effects are also associated with the development of less conventional power sources. Bacteriological and chemical pollution, climatic change and aesthetic and noise intrusion are possible effects. Regional Policy Statement for Otago 169
Issues Explanation Objective Policies See Also Other Issues At the same time the production, use, transmission and distribution of energy and the development of energy resources has positive impacts. The provision of energy to sustain lifestyles enjoyed by the region s population is one example. Energy developments have also been found to create new habitats, contribute to landscape values, create employment opportunities and recreational amenities, improve community facilities, create irrigation opportunities and provide flood reduction benefits. 12.3.2 Otago s dependence on non-renewable energy resources is unsustainable in the long term. Continued dependence on non-renewable sources of energy, such as oil, gas and coal, is unsustainable in the long-term. The development of and transition to renewable minimum impact energy sources will allow future generations to meet their energy needs with least adverse environmental impact. 12.4.2 12.4.3 12.5.2 12.5.4 4.3.5 6.3.2 to 6.3.4 7.3.1 to 7.3.2 9.3.1 to 9.3.3 14.3.1 to 14.3.6 15.3.1 12.3.3 Wasteful and inefficient energy use occurs in Otago. The amount of energy wasted in Otago, both in terms of domestic consumption and commercial and industrial use, can be reduced by adopting and improving energy efficient practices. There is a potential and willingness to achieve more efficient use of energy in Otago. 12.4.2 12.5.3 12.5.4 4.3.5 9.3.2 to 9.3.3 14.3.1 to 14.3.6 15.3.1 12.3.4 Long-term regional benefits from energy developments have not been fully realised in Otago. The Otago community has borne a great deal of the flow-on environmental costs of hydro electric developments without necessarily being adequately compensated. 12.4.2 12.5.4 14.3.1 to 14.3.6 15.3.1 Regional Policy Statement for Otago 170
12.4 Objectives Explanation and Principal Reasons for Adopting Policies See Also Other Objectives 12.4.1 To avoid, remedy or mitigate the adverse effects on Otago s communities and environment resulting from the production and use of energy. This objective recognises that the production and use of energy, and the development of Otago s energy resources, may cause adverse effects, and aims to allow for the avoidance, remedy (including compensation) or mitigation of such effects in order that the quality and life-supporting capacity of the environment is not compromised. 12.5.1 12.5.4 4.4.1 to 4.4.6 5.4.1 to 5.4.5 6.4.1 to 6.4.2 6.4.6 to 6.4.8 7.4.1 9.4.1 9.4.3 10.4.1 10.4.3 11.4.4 13.4.1 to 13.4.2 13.4.4 14.4.1 to 14.4.2 15.4.1 12.4.2 To sustainably and efficiently produce and use energy taking into account community values and expectations. This objective establishes a framework for the sustainable and efficient management of the region s natural energy assets and supports, where environmentally appropriate and economically viable, continued production, use and further development of these resources. 12.5.2 12.5.3 12.5.4 4.4.2 to 4.4.5 5.4.5 6.4.1 to 6.4.2 6.4.4 6.4.6 6.4.8 7.4.1 9.4.1 to 9.4.2 14.4.1 to 14.4.2 15.4.1 12.4.3 To encourage use of renewable resources to produce energy. Using greater amounts of energy from renewable energy resources lessens Otago s dependence on non renewable energy resources. 12.5.2 12.5.3 12.5.4 4.4.2 to 4.4.5 6.4.1 6.4.3 9.4.3 14.4.1 to 14.4.2 15.4.1 Regional Policy Statement for Otago 171
12.5 Policies Explanation and Principal Reasons for Adopting Methods See Also Other Policies 12.5.1 Provide for procedures to prohibit the production of nuclear power throughout the region. Section 5 of the Resource Management Act requires that the lifesupporting capacity of air, water, soil and ecosystems be safeguarded and that the adverse effects of activities be avoided, remedied or mitigated. In order to avoid any adverse effects associated with nuclear accidents and to protect the life-supporting capacity of Otago s resources, provision will be made for the production of nuclear power within Otago to be prohibited. 12.6.1 12.6.12 12.6.16 8.5.1 to 8.5.2 8.5.5 to 8.5.6 8.5.10 9.5.5 12.5.2 14.5.1 to 14.5.8 15.5.1 to15.5.2 12.5.2 To promote the sustainable management and use of energy through: (a) Encouraging energy production facilities that draw on the region s renewable energy resources; and (b) Encouraging the use of renewable energy resources, in a way that safeguards the lifesupporting capacity of air, water, soil and ecosystems and avoids, remedies and mitigates adverse effects on the environment, as a replacement for non-renewable energy resources: and (c) Encouraging the sustainable development of Otago s renewable energy resources. This policy promotes sustainable and environmentally friendly energy production, use and development. It recognises that the sustainability of non-renewable energy sources can be assisted by reducing the region s relative dependence on finite energy resources and promotes the aim that the energy needs of future generations can be met by giving preference to energy sources that are less polluting and more sustainable by nature. 12.6.2 12.6.3 12.6.4 12.6.8 12.6.9 12.6.11 5.5.1 to 5.5.3 5.5.5 to 5.5.6 5.5.8 6.5.1 to 6.5.6 6.5.9 7.5.1 to 7.5.5 8.5.1 to 8.5.2 8.5.5 to 8.5.6 9.5.2 to 9.5.3 9.5.5 10.5.1 to 10.5.2 11.5.2 to 11.5.3 13.5.1 13.5.2 13.5.4 14.5.1 to 14.5.8 15.5.1 to 15.5.2 12.5.3 To promote improved energy efficiency within Otago through: (a) Encouraging the use of energy efficient technology and architecture; and (b) Educating the public about energy efficiency; and (c) Encouraging energy efficiency in all industry sectors; and (d) Encouraging energy efficient transport modes in Otago. This policy will ensure energy efficient concepts and practices are actively promoted and pursued in order to secure energy savings and to provide room for growth in energy consumption in the future. 12.6.4 12.6.5 12.6.6 12.6.7 12.6.8 12.6.9 12.6.11 12.6.13 12.6.14 12.6.15 9.5.2 to 9.5.3 9.5.5 14.5.1 to 14.5.8 15.5.1 to 15.5.2 Regional Policy Statement for Otago 172
Policies Explanation and Principal Reasons for Adopting Methods See Also Other Policies 12.6.17 12.6.18 12.6.19 12.5.4 To promote the securing of appropriate benefits for Otago s communities from any energy developments within the region. Arguments need to be raised at a political level, with parties such as the Minister of State Owned Enterprises and representatives of energy companies, that the region loses a great deal of the benefit that it should derive from its energy resources. 12.6.10 9.5.5 14.5.1 to 14.5.8 15.5.1 to 15.5.2 Regional Policy Statement for Otago 173
12.6 Methods The methods to be used by the Otago Regional Council include the following: 12.6.1 Make nuclear power generation a prohibited activity in relevant regional plans. 12.6.2 Continue to give priority to the allocation of water to existing hydro-electric power generation systems in Otago except: (a) Where it is determined that the water is required for the needs of other significant values; and (b) Where these values cannot be provided for elsewhere in the locality. 12.6.3 Develop policies and strategies that encourage and promote the use and development of renewable energy sources. 12.6.4 Consider the use of renewable energy sources and the efficient use of energy within the transport sector through the Regional Land Transport Strategy. 12.6.5 Develop policies and strategies to promote the improved efficiency of energy use in Otago. 12.6.6 Educate about and promote energy efficient practices. 12.6.7 Encourage new energy intensive industries to undertake an energy efficiency assessment. 12.6.8 Initiate, support and encourage research and monitoring programmes to provide information on Otago s energy issues and solutions. 12.6.9 Promote and encourage interagency liaison and cooperation and the development of protocols to ensure integrated and coordinated management of Otago s energy resources. 12.6.10 Advocate with appropriate parties regarding the need for long-term regional benefits from energy developments and for adequate compensation for adverse effects caused by the development of energy resources. 12.6.11 Advocate to Central Government over the need for a national policy statement on energy and a sustainable energy management policy. 12.6.12 Consider inclusion of conditions on resource consents and consider declining such consents as necessary to avoid, remedy or mitigate the adverse effects of energy production. 12.6.13 Consult with Otago s communities regarding the management of Otago s energy resources. 12.6.14 Use education programmes to improve community awareness and understanding of energy issues and sustainable management of energy resources in Otago. 12.6.15 Recognise and encourage the role of community groups that promote sustainable management of energy resources. Regional Policy Statement for Otago 174
Methods which may be used by Otago s territorial local authorities include the following: 12.6.16 Make nuclear power generation a prohibited activity in district plans. 12.6.17 Encourage the use of energy efficient technology and architecture. 12.6.18 Educate about and promote energy efficient practices. 12.6.19 Consider energy efficiency requirements in the development of District Land Transport Programmes. Explanation and Principal Reasons for Adopting These methods allow for integrated and coordinated management of Otago s energy resources, incorporating the avoidance of adverse effects associated with nuclear power production; the promotion of the sustainable management, use and development of energy resources by providing for the continued allocation of water resources for existing hydro-electric schemes (in recognition of the contribution these schemes make to the nation s energy supplies) and by favouring renewable energy sources; the promotion of energy efficiency and energy savings; and the ability to further arguments that the region should receive increased benefit from the use of its energy resources. Regional Policy Statement for Otago 175
12.7 Anticipated Environmental Results The environmental results anticipated from the above policies and methods of implementation include: 12.7.1 Otago s communities are able to meet their present and reasonably foreseeable energy needs. 12.7.2 The management of Otago s energy resources takes into account manawhenua values. 12.7.3 Otago s energy resources (excluding minerals) are managed in a sustainable manner. 12.7.4 The adverse effects on the environment from energy production, use and development are avoided or mitigated. 12.7.5 Nuclear power is not generated in Otago. 12.7.6 There is a relative reduction in the demand for conventional non-renewable sources of energy and cost-effective renewable sources of energy are developed. 12.7.7 Energy efficient practices are adopted and improved throughout Otago. 12.7.8 Energy developments in Otago provide long-term regional benefits. Regional Policy Statement for Otago 176